Workplace Report October 2005

Law - Redundancy

Selection for redundancy

Case 2: The facts

Mr Lloyd was one of nine export managers. His employer decided that it needed to make one of these posts redundant, and identified his as the most appropriate since there was less work and less potential for new business in the geographical area that he was responsible for.

The ruling

The Employment Appeal Tribunal held that the employer had been entitled to select Lloyd for redundancy from a pool of one, and his dismissal was for a fair reason.

It also found, however, that the dismissal was procedurally unfair because Lloyd's appeal had not been carried out properly; although there had been no contractual or statutory obligation to hold an appeal at the time of his dismissal, having offered an appeal the company had been obliged to make sure that it was carried out fairly.

Lloyd therefore received compensation, but reduced by 100% (i.e. to zero) since he would have been made redundant in any event.

Alvis Vickers v Lloyd UKEAT/0785/04